Breaking! U.S. Treasury Secretary: U.S. Plans to Reinstate Some Tariffs on China, With Rates Not Exceeding 20%

According to Reuters, on May 19, 2026, U.S. Treasury Secretary Scott Bessent said in an interview with Reuters during the G7 finance ministers’ meeting in Paris that the Trump administration is “not in a hurry” to extend the U.S.-China tariff and critical minerals trade truce, which is set to expire in November, because both sides still have time later this year to renew the agreement. Bessent said that as long as tariff levels are not raised further, he believes China would accept the United States restoring previous tariff levels through new Section 301 tariffs.

🚨 The United States is in no rush to extend its trade truce with China.

The tariff and critical minerals trade truce agreement reached in negotiations between China and the United States last year is set to expire this November after a one-year term. Bessent said the situation is relatively stable for now and that the U.S. government is “in no hurry” to extend it ahead of schedule, adding that the two sides still have sufficient time to renew it through follow-up talks later this year.

🚨 U.S. plans to reinstate some tariffs on China

Bessent believes that China would accept the United States restoring some of the previous tariffs on Chinese goods under Section 301, as long as the tariff rate is not raised further.

Bessent said that as long as the tariff level reinstated by the United States under the new Section 301 measures does not exceed the previously agreed rate of about 20%, China will accept it.

In other words, the United States plans to restore some tariffs through Section 301, but the overall tariff rate will not exceed 20%.

At present, the additional tariffs imposed by the United States on China are mainly Section 301 tariffs, with rates ranging from 7.5% to 25%, covering nearly half of all Chinese goods exported to the U.S., primarily industrial products. In addition, the United States has also imposed an additional 10% tariff under Section 122 and 25% to 50% tariffs under Section 232, but these two tariffs apply globally to all countries and regions rather than targeting China alone. Among them, the temporary additional 10% tariff under Section 122 will expire in July this year.

Bessent noted that, following the U.S. Supreme Court’s overturning of the Trump administration’s reciprocal tariffs and fentanyl-related tariff measures, China has recently received lower tariff treatment, with the current additional tariffs reduced to about 20% (in addition to the Section 301 industrial goods tariffs of roughly 7.5% to 25% retained from Trump’s first term).

The goal of the U.S. government is to replace the 10% Section 122 tariff, which is set to expire in July, with the new Section 301 tariff.

Bessent said he believes the most important achievement was establishing bilateral agreements with China on managed trade, investment, and artificial intelligence, which will be discussed in subsequent negotiations.

🚨 Consumer goods tariffs lowered or eliminated

The two sides plan to use the “Trade Committee” mechanism to select an initial batch of approximately US$30 billion worth of non-strategic goods and gradually reduce or eliminate tariffs on them.

According to the U.S. proposal, China may lower tariffs on American energy products, while the U.S. may reduce tariffs on certain Chinese consumer goods, such as fireworks and Halloween costumes, which are "unlikely to be produced in the U.S."

🚨 China and the United States will launch AI safety talks

Bessent also revealed that China and the United States are expected to begin AI safety consultations within the next 4 to 8 weeks. He said one of the goals for both sides is to prevent powerful AI models from proliferating to non-state actors.